Yen rises broadly today as risk aversion is dominating the overall financial markets. In particular, US 10-year yield dives through 1.4 handle in Asia, and we’d see if the weakness would persist. Though, selling focus is turning from Aussie and Kiwi to Canadian. Dollar is consolidating last week’s strong gains, but there is no sign of topping. The economic calendar is light today, but comments from Fed officials could still trigger much volatility.

Technically, we’d pay attention to the actions in European crosses to gauge the comparative path of Euro, Sterling and Swiss Franc. EUR/GBP’s corrective-looking decline from 0.8718 extended last week but lacked follow through momentum. Indeed, break of 0.8672 resistance could suggest that EUR/GBP is ready to resume the rebound from 0.8470. EUR/CHF is also extending the rebound from 1.0863 and now sits side key resistance zone at 1.0925/1026. Firm break of this zone will indicate completion of whole choppy fall from 1.1149. The development would be interesting to watch in overwhelming moves in Dollar and Yen pairs.
In Asia, at the time of writing, Nikkei is down -3.72%. Hong Kong HSI is down -1.53%. China Shanghai SSE is down -0.18%. Singapore Strait Times is down -1.39%. Japan 10-year JGB yield is down -0.0106 at 0.050.

Source: www.actionforex.com